Adapting Leadership for Uncertainty Through Continuous Learning and Inclusive Practices

Key Quotes

"Leadership at the top, whether it's a foundation, a school system, a hospital, a company, or a country, has the greatest impact when things are coming apart, when uncertainty is high, and when it's hard to understand or recognize where we ought to be going."

Mike Useem argues that leadership's importance is amplified during times of crisis and uncertainty. This quote highlights that effective leadership is most crucial when established structures are faltering and the path forward is unclear. Useem suggests that these challenging moments are when top leaders have their most significant influence.

"To cite a well-known academic study, which really sums up the point, leadership at the top... has the greatest impact when things are coming apart, when uncertainty is high, when it's hard to understand, to recognize where we ought to be going."

Mike Useem emphasizes that leadership's critical role is most evident during periods of instability and confusion. He uses this academic study to illustrate that leaders are most impactful when facing significant challenges. Useem's point is that these are the moments when clear direction and decisive action are most needed.

"Not only do we need a lot more leadership at the moment when uncertainty is high, it's going to be different from what we needed in the past. Not completely, lots of fundamentals are the same, but what got you here won't get you there."

Mike Useem posits that the demands on leadership are evolving, especially in uncertain times. He explains that while core leadership principles remain, past strategies may no longer be sufficient. Useem suggests that leaders must adapt their approaches to meet current and future challenges effectively.

"In a survey a couple of years ago, people at the top of the business hierarchy, top of the pyramid, senior managers in US companies, estimate that about a fifth of what they know is no longer useful, and about a fifth of what they should know they've really got to acquire."

Mike Useem points to survey data indicating a significant knowledge gap among senior managers. He highlights that a substantial portion of their current expertise is becoming obsolete, while a similar amount of new knowledge is necessary. Useem uses this to underscore the need for continuous learning and skill acquisition in leadership.

"There is a theory that somebody is a natural-born leader, you either have it or you don't. We don't accept that on the premise that many leadership skills can be acquired, are acquired."

Mike Useem challenges the notion of innate leadership ability, asserting that leadership is largely a skill that can be developed. He argues against the idea that leaders are born, not made. Useem's perspective is that individuals can actively learn and cultivate the competencies required for effective leadership.

"Okay, so then let me throw in the component of innovation. Right now, we could use the example of AI, but certainly there have been examples of innovation throughout time that have forced leaders to open the door more and listen more and understand what the changes were happening and what was going to occur."

Mike Useem connects innovation, such as AI, to the evolving needs of leadership. He notes that technological advancements historically compel leaders to be more receptive and observant. Useem suggests that innovation necessitates leaders actively seeking to understand emerging trends and their implications.

"I think top of my list on that one is getting out of your office. It seems like an obvious point, but it can be a very significant step if you really get out of your office."

Mike Useem advocates for leaders to actively engage with the external environment beyond their immediate workspace. He suggests that leaving one's office is a crucial, albeit simple, action for gaining broader perspectives. Useem implies that this physical movement facilitates a deeper understanding of the business landscape.

"So we have conducted research recently in Japan, in China, in India, on some of the business, call them leadership agendas, that are different from your own. No better way to think about what you need to take than to take a look at places where people do it very differently."

Mike Useem recommends international exposure as a method for leadership development. He explains that examining leadership practices in different countries offers valuable insights. Useem suggests that observing diverse approaches can help leaders identify and adopt new strategies.

"It's a great point because it really speaks to one of those elements, a really important element, that to find what leadership is now requiring that was not so much required say 15 years ago, and that is an understanding that the people who work for you... they are there not just as an automaton, they're people."

Mike Useem highlights a significant shift in leadership requirements, emphasizing the need to recognize employees as individuals rather than mere cogs in a machine. He points out that this understanding is more critical now than in the past. Useem suggests that modern leadership demands an appreciation for the human element within an organization.

"In modern times these days, they feel it is appropriate for the company to help them understand why they're doing what they're doing. What purpose does that have? What customers are they serving? What improvements in healthcare delivery are they providing?"

Mike Useem observes that employees increasingly seek purpose and meaning in their work. He notes that they expect companies to articulate the "why" behind their operations. Useem uses these questions to illustrate the growing importance of purpose-driven leadership in engaging the workforce.

"But in recent years, and this is one of the great changes that we've experienced over the last 20 years, leadership is increasingly coming from all levels, senior management and middle management."

Mike Useem identifies a fundamental change in leadership dynamics, stating that leadership is no longer confined to the top ranks. He explains that influence and initiative are now emerging from middle management as well. Useem's observation points to a more distributed model of leadership within organizations.

"I tend to call that leading up, getting people below you to lead up, to bring an idea to you before you blow it, to speak truth to power, a lot of ways to put the same thing."

Mike Useem describes a crucial leadership dynamic where subordinates proactively share ideas and feedback with superiors. He terms this "leading up," emphasizing its importance in preventing mistakes and fostering innovation. Useem suggests that effective leaders encourage and value input from those below them.

"As he reached higher and higher levels of the company, finally becoming its chief executive officer, a huge company, 150,000 employees, he said he noticed two things. Number one, the news got better, which is a way of saying the bad news was not coming up, and the jokes got, his jokes got funnier, which is also a way of saying that there was more deference to him."

Mike Useem illustrates a common challenge at senior leadership levels, where negative information may be withheld, and deference can create a distorted perception of reality. He notes that as a CEO's position increased, the flow of unfiltered information decreased. Useem uses this anecdote to highlight the need for leaders to actively seek out honest feedback.

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